Insiders are buying, but should you? When company executives throw more of their wealth in their company, increasing their risk of exposure to one particular entity, sends a bullish signal that they are confident about that company’s future. This is a strong indicator that the company’s future growth outlook may not be adequately captured in the company’s share price, in insiders’ eyes. In this article, I’ve picked out three stocks insiders have been accumulating over the past three months.
Jiangxi Copper Company Limited, an integrated copper producer, engages in mining, milling, smelting, and refining copper in Mainland China, Hong Kong, and internationally. Founded in 1997, and currently headed by CEO Yuneng Wu, the company now has 21,489 employees and with the market cap of HKD HK$59.75B, it falls under the large-cap group.
Jiangxi Copper Company Limited’s (SEHK:358) insiders have invested more than 2 million shares in the large-cap stocks within the past three months. In total, individual insiders own over 18 million shares in the business, which makes up around 0.52% of total shares outstanding.
The entity that bought on the open market in the last three months was
Citigroup Inc. Banking and Securities Investments. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.
In the upcoming year, analysts expect a robust revenue growth of 11.76% to drive the meaningful bottom-line growth of 111.29%. 358’s positive future sentiment could be a key driver of insiders ramping their shares if they believe the growth is not yet reflected in the current share price. Continue research on Jiangxi Copper here.
China Hongqiao Group Limited, an investment holding company, manufactures and sells aluminum products in the People’s Republic of China and Indonesia. Started in 1994, and currently headed by CEO Bo Zhang, the company now has 50,500 employees and with the company’s market cap sitting at HKD HK$75.32B, it falls under the large-cap group.
China Hongqiao Group Limited (SEHK:1378) is one of China’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in more than 546 million shares during this period. In total, individual insiders own over 6 billion shares in the business, which makes up around 68.09% of total shares outstanding.
The entity that bought on the open market in the last three months was
Capital Research and Management Company. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.
Industry analysts are forecasting negative revenue growth in the upcoming year, which could signal some headwinds for 1378 moving forward. Conversely, its bottom-line growth is expected to be an outstanding 77.45% which could signal management’s cost initiatives yielding positive results. Insiders’ conviction of this strategy could be an underlying drive for the recent ramp up in shareholdings. Interested in China Hongqiao Group? Find out more here.
China Jinmao Holdings Group Limited, an investment holding company, invests in, develops, and operates real estate projects in the People’s Republic of China. Started in 2004, and currently headed by CEO Congrui Li, the company now has 9,149 employees and with the market cap of HKD HK$50.94B, it falls under the large-cap category.
China Jinmao Holdings Group Limited’s (SEHK:817) insiders have invested more than 27 million shares in the large-cap stocks within the past three months. In total, individual insiders own over 30 million shares in the business, which makes up around 0.26% of total shares outstanding.
Latest buying activities involved the following insiders: Congrui Li (management and board member) . , Liuyi Song (management and board member) . and Nan Jiang (management and board member) .
The entity that bought on the open market in the last three months was
GIC Pte. Ltd.. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.
In the upcoming year, analysts expect a robust revenue growth of 39.03% to drive the meaningful bottom-line growth of 25.09%. 817’s positive future sentiment could be a key driver of insiders ramping their shares if they believe the growth is not yet reflected in the current share price. Dig deeper into China Jinmao Holdings Group here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
